That is the question with its answer. Can someone please explain what is going on here. What is the concept of this question exactly? How is the flexed budget calculated in this question

Antonio plc makes product X, the standard costs of which are: Sales revenue 31 Direct labour (2 hours) (11) Direct materials (1 kg) (10) Fixed overheads (3) Standard profit The budgeted output for March was 1.000 units of product X; the actual output was 1.100 units, which was sold for 34.950. There were no inventories at the start or end of March. The actual production costs were: Direct labour (2.150 hours) 12.210 Direct materials (1.170 kg) 11.630 Fixed overheads 3.200 Required: Calculate the variances for March as fully as you are able from the available information, and use them to reconcile the budgeted and actual profit figures. Antonio plc Budget Actual Original Flexed Output (units) 1.000 1.100 1.100 (production and sales) Sales revenue 31.000 34.100 34.950 Direct labour (11.000) (12.100) (1.075 hrs) (1.100 hrs) (12.210) (1.100 kg) (11.630) (1.170 kg) Direct materials (10.000) (11.000) Fixed overheads (3.000) (3.000) (3.200) Operating profit 7.000 8.000 7910 Sales variances Volume (8.000 - 7.000) 1.000(F) Price (34.950 - 34.100) 850(F) Direct labour variances Efficiency (1.100 - 1.075) x 11.00 275(F) Rate (1.075 x 11.00) - 12.210 385(A) Direct materials variances Usage [(1.100 x 1) - 1.170] x 10 700(A) Price (1.170 x 10) - 11.630 70(F) Fixed overhead variances Expenditure 3.000 - 3.200 200(A)